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158bc block assessment opted vsvs by assessee

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ajeet singh

1392 Points Posted on 22 May 2022

assessment order under 158bc (set aside by itat) was passed on 12.12.2019 assessed income of 550000/- and demand of 330000/- . At the time of this order being block assessment the order was passed manually and no credit was given of tax paid 1400000/- . Later on the assessee submit 154 application for allowing credit of tax already paid and also filed appeal against the assessment order. Meanwhile the AO passed 154 order allowing tax credit and refund of excess tax paid alongwith 244a int. about 6lkh total refund of rs 16lkh. (however the refund was not credited due to challan paid for block period were not for a single a.y. in the system). Later on the assessee opted vsvs and subsequently form no 5 is issued to assessee. Now the question arises about the 244A interest which under vsvs is not applicable. So how to proceed further from asseee view

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Quick Summary

This discussion concerns a 158BC block assessment order that was later set aside. Initially, the assessment order failed to credit tax paid by the assessee. While a subsequent Section 154 application led to the allowance of tax credit and a significant refund with interest, the refund was held up due to challan issues. The assessee then opted for VSVS, leading to the issuance of Form No. 5. The core issue now is how to address the 244A interest, which is typically not applicable under VSVS, from the assessee's perspective.